Gold is up 1% on Tuesday after the market struggled Monday and tensions remained high in Ukraine. The European Bank also hinted that they may decrease their own economic stimulus as the Federal Reserve continues its reduction of the billion dollar bond-buying program.
Gold investors received even more positive news today as Iraq’s central bank said it might buy more gold in the coming months, according to The Star Online.
All of this news caused spot gold to trade as high as $1,314.43 an ounce, a two-week high and was still up 0.9% at $1,308.15 an ounce at 11:04am EST.
Despite an onslaught of positive news for gold, some analysts are still concerned that they yellow metal has not broken the $1,322 resistance level, which could signal a restart of downward pressure. This theory will certainly be put to the test in the coming days, as even more good news is expected soon.
The U.S. dollar has fallen 0.3%, mostly due to gains by the Japanese yen after the Bank of Japan decided to slow its own economic stimulus and a strengthened euro.
“Gold seems to be benefiting from both optimism about Europe’s economic future and pessimism about Europe’s geopolitical future,” Macquarie analyst Matthew Turner told The Star Online.
Ongoing tensions in Ukraine have also bolstered gold’s value, as the metal is typically seen as insurance against potential global battles.
Finally, all gold investors will be watching for the release of the minutes on Wednesday from the Federal Reserve’s March FOMC meeting. The state of the US economy could very well be the main catalyst for a big move in the price of gold.